If it appreciates  10%, the return from appreciation is 12.5% (25% of the return of the higher LTV).  20% appreciation would produce a 25% return (25% of the higher LTV) $1945/month crease to the cash flow

however, coastal California buy n hold residential RE has produced great return for over 50 years. 

As for pros/cons of keeping it:Cons: 1) Poor cash flow to value, 2) Managing from afar has extra difficulties/risk, 3) No cap gains if you sell nowPros: APPRECIATION: San Diego historically has produced outstanding return for long term buy and hold.  

They are all rehabbed and solid producers. 

I'm assuming with "commercial" you have a company and are looking for a line of credit based on the income that your company is producing?  

So I went through a spell maybe 18 months ago, where several of my top producing 5 star cabins just stop booking, and never could figure out why other than perhaps an algorithm change.  

Realize this would not produce much cash flow.Add the ADU likely would cost more than the value it would add and you would lose your great loan.  

I may do a residential cash out but the bank does not value a residential property off the income in produces, just the comps in the area.

There were plenty of syndicators who produced a big return like that (occasionally) in the past.

What are some of the best real estate low risk strategies investing long distance/ Out of state that can produce reoccurring income?